Free Marketing Dissertations - People In Various Countries Like Different Things And/or Require Different
People in various countries like different things and/or require different standards, and this factor should definitely be taken into account by the organisation in order to avoid any pitfalls. Penske Logistics, and American company that started its European operations in the late 1990s provide an example of this. They committed a judgment error. The concept they sought to introduce was, outsourcing of logistics services. It was the same offer the company applied in the US. The difference was that the European audience was not yet open to the concept of outsourcing, especially as far as logistics services were concerned. The traditional logistics management style was to work with a relatively large number of hauliers and every year the customer would negotiate lower transport tariffs. European companies / countries, with the exception of the UK and perhaps Germany to a certain extent, were alien to the idea of outsourcing one of their business functions to a third party. This concept later developed in Europe, as well. However, it did constitute a setback for the company at the beginning of its European operations.
Selecting international markets in which to sell and compete is of great strategic importance for an organisation, and usually not an easy task to carry out. There are various factors an organisation needs to consider when making this selection. For instance, the market potential has to be identified. As mentioned previously, the company has to assess the demand for a special product. Some of the questions it needs to address include the following: A) is there a gap in the market? B) Which product substitutes can be identified? C) What is the rate of substitution? D) What are the consumer tastes and behaviour? Other aspects, the firm should consider include: the level of competition within the chosen market; the local economic situation; any specific government legislation / regulations; import tariffs if applicable and the possible logistics set-up the company should adopt. More over, appropriate distribution channels should be put in place to establish the best way to get the product to the consumer.
Basically, the organisation has to carry out a market audit. The overall marketing environment needs to be analysed, including the macro- and micro- environment. Tools and methods which can help the company assess the marketing environment comprise: Pest analysis to assess political, economic, sociocultural and technological factors of the environment. A SWOT analysis, to determine the firm’s strengths and weaknesses and how they relate to the local market. And lastly, Porter’s Five Forces analysis to assess the overall level of competition. In addition, the organisation needs to look at the cultural differences in terms of values, languages and mentality.
